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Affordable Credit Checks Produces Two Styles of Credit Reports: Personal

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Affordable Credit Checks produces two styles of credit reports: personal and corporate.The difference between the two is the amount of background information and data collection required.The corporate report uses more skilled personnel because additional checking and data are required.The relevant figures for the year just completed follow: Total support service costs to be allocated are $3,200,000.  Allocation base  Indlvidual  Corporate  Data purchased $40,000$80,000 Research hours 24,00030,000 Interview hours 1,00010,000 Number of reports 16,0003,000\begin{array} { | l | r | r | } \hline \text { Allocation base } & \text { Indlvidual } & \text { Corporate } \\\hline \text { Data purchased } & \$ 40,000 & \$ 80,000 \\\hline \text { Research hours } & 24,000 & 30,000 \\\hline \text { Interview hours } & 1,000 & 10,000 \\\hline \text { Number of reports } & 16,000 & 3,000 \\\hline\end{array} Required:
(a)Which method would be preferred by each manager? Which method would be least preferred?
(b)Provide arguments that each manager would make for his/her preferred method.How would each manager argue against his/her least preferred method?

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Definitions:

Low-Powered Objective

An objective lens on a microscope with a relatively low magnification power, used for initial scanning and location of specimen details.

Scanning Objective

A low-power objective lens on a microscope used to scan the whole slide to find the specimen before using higher magnification.

Field Diameter

The visible area observed through the lens of a microscope or other viewing instrument.

Objective

Unbiased, not influenced by personal feelings or opinions in considering and representing facts.

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